TECHNICAL ANALYSIS: Implats shares show possible uptrend | Fin24
 
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TECHNICAL ANALYSIS: Implats shares show possible uptrend

Feb 28 2019 18:55
Colin Abrams

Impala Platinum has come out with positive earnings and its price continues to move higher, in what is a very solid uptrend. The good news is there are still significantly higher levels to come.

Implats – More upside to come

Recommendation: MEDIUM-TERM HOLD/TRADERS BUY

Current Trend: Up on all main timeframes.

Chart Setup: Implats is continuing higher, and really accelerating on Thursday after reporting a turnaround in earnings. It is in a very strong trend and has a higher target from an inverse head and shoulders pattern (as labelled).

  • It also formed a rounding bottom (labelled), which points to further upside to come.
  • It short-term Stochastic (on top) is currently making lower highs, unlike the price, and this implies a correction (albeit temporary) is likely at any time.

Strategy Details: It remains a medium-term hold (i.e. months).  If not in, buy on a pullback towards R55. As mentioned in recent weeks and months, there is huge upside potential in platinum stocks still.

Target: The rounding bottom is targeting line 2 initially at R71. While its further target is R88, based on the height of the inverse head and shoulders pattern, projected up. (There is also a shorter-term target of R67). One can take some profits at each level.

Stop-loss: It depends on your time horizon. For the medium-term it’s a close below R41. For short-term traders it’s a close below R50. (Personally I would like to give it more wiggle room, due to its large med-term upside potential).

(Daily chart)

daily chart

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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